This invention relates to a system and a method for processing signature-based payment transactions and more particularly relates to such a system and method in which the merchant's records of payment can be generated and maintained electronically without generation of paper records while providing paper records to customers when needed.
In retailing and similar areas, the volume of transactions is often such that management of paper records is becoming increasingly burdensome. This problem in the use of paper records is particularly noted in terms of storage of paper documents, retrieval of prior paper records which are needed at a later time, and use of the paper documents in authorizing and/or validating the transfer of funds. If the transfer of funds is disputed, the party responsible for maintaining the paper documents may be held liable for the amount of payment represented by the paper document in the event that such document cannot be located. A failure in ability to retrieve documents in a rapid, efficient manner may thus be costly to a merchant and/or a financial institution. In addition, the effort and facilities required to store paper documents for possible retrieval are costly. Furthermore, the delay which may be involved in processing paper documents through such a system in the event of a dispute may be costly and negative in terms of customer relations.
Another source of delay in the current processing of transactions at the point of sale is the time required for processing credit card transactions, including such time-consuming operations as inserting a customer card in an embossing device, performing the embossing operation, filling out the credit receipt blanks and obtaining a customer signature thereon. An arrangement by which all of the necessary information could be assembled and printed on a document in one operation would thus enhance efficiency at the point of sale station.